What must a producer have before selling or negotiating insurance products with non-admitted insurers?

To sell or negotiate insurance products with non-admitted insurers, a producer must have a broker's license. This requirement stems from the nature of surplus lines insurance, which involves policies that are not available from admitted insurers and are often associated with higher risk or specialty coverage needs.

A broker's license allows the producer to represent the interests of the client in seeking coverage from non-admitted carriers, which are not regulated or approved by the state's insurance department. This is crucial because brokers can access markets that are not available through standard licensed agents and can facilitate transactions that meet the unique needs of their clients.

In contrast, a life insurance license or a property license is specific to particular types of coverage and does not encompass the broader spectrum of surplus lines insurance that brokers handle. Similarly, a general agent's license typically covers agency-level responsibilities and may not explicitly include the privileges required to deal with non-admitted insurers. Hence, the broker's license is essential for the specific function of negotiating and selling surplus lines insurance.